Breaking News, Latest News, World News, India News, Cricket, Videos & Photos

Market review: Prices of edible oil increased, Mustard Dadri oil rises by Rs 900

Due to the rising wedding season and festive demand, along with the depletion of edible oil stocks, various edible oil-oilseed prices improved in the Delhi oil-oilseed market last week, and there was a substantial improvement in prices. The price of sunflower oil has reached a record high of Rs 205 per kg in the country, while mustard Dadri oil has shown a rise of Rs 900 per quintal.

Demand for mustard and indigenous oils increased

Sources in the market said that in the soybean-producing country Argentina, a scorching crop of about 2,000 hectares was scorched due to the heat, while in other producing countries Brazil, due to excess rain, there may be a substantial decline in soybean production. The demand for mustard and indigenous oils has increased due to the expensive import of foreign imported oils and the condition is that the mustard mills which have been closed for almost 30 years in Rajasthan have started getting work again.

Global boom of edible oil prices

Market sources believe that while global prices of edible oil prices have improved the domestic prices of oil and oilseeds, there is also a possibility of a further increase in oilseed production in the country. In the current year, the way farmers have received an increased minimum support price (MSP) for mustard and soybean, if it continues, farmers can increase the area under sowing of oilseeds instead of wheat and paddy. This will not only save crores of foreign exchange on the import of edible oils, but we will get foreign currency due to the export of surplus production.

Less chance of adulteration in mustard

Sources said that while the demand increased, mustard oil-oilseeds improved, while local as well as export demand, groundnut oil-oilseed prices also benefited. According to the current import tariff value, the price of soybean degum in the country is Rs 136 per kg, while the price of mustard is Rs 132 per kg. Therefore, the possibility of adulteration in mustard is also reduced, which is better news in terms of the health of consumers. 

Some oil traders had made fake deals of supply of 90,000 tonnes of edible oil, which was supposed to be supplied in March-April but the oil refining companies are not getting delivery. Out of this, 60,000 tonnes of soybean degum oil was also there. Apart from this, there were deals of 20,000 tonnes of mustard and 10,000 tonnes of Palm Olein deals. In the current situation, CPO and Palm Olein oil prices also improved as global demand for Palm Olein increased. The Malaysia and Chicago exchanges also remained mostly bullish for the past week.

Last week, domestic soybean oil-oilseeds prices also improved significantly due to the heavy demand for Soyabean oil-free oil (DOC) abroad. During the month of October to February of FY 2019-20, 3.45 lakh tonnes of DOC was exported, which has almost quadrupled to 14 lakh 35 thousand tonnes in the same period of 2020-21.

Soyabean at a record price of Rs 6,600 a quintal

 Soybean demand has increased globally. In particular, companies that make soybean badi in the country have to buy better grains of soybean at a record price of Rs 6,600 a quintal. It is said that soybean prices rose to $ 1,325 from $ 1,250 a tonne the previous weekend, while CPO prices rose to $ 1,170 per tonne from $ 1,120 earlier. At the same time, the price of sunflower oil has reached a record high of Rs 205 kg in the country.

Demand for Palm Olein has increased globally as the summer season begins. Apart from this, CPO and Palm Olein oil prices also improved substantially during the weekend due to the wedding season and festive demand in the country. Sources said that the prices of soybean seeds and loos ended the week at Rs 5,535-5,585 and Rs 5,400-5,450 per quintal, an improvement of Rs 155 and Rs 170, respectively, over the previous weekend.

Soybean Delhi jumped by Rs 900

Soybean Delhi, Soybean Indore and Soyabean Digam oil were trading at Rs 14,000, Rs 13,650 and Rs 12,650 per quintal, with a correction of Rs 900, Rs 950 and Rs 650 respectively. At the same time, mustard prices were improving due to increased demand in the market and last weekend, mustard seeds closed at Rs 5,970-6,020, indicating an improvement of Rs 70. Mustard Dadri oil improved by Rs 900 to Rs 13,200 per quintal. Mustard Pucci Ghani oil closed at Rs 2,075-2,165 and Rs 2,205 -2,320 per tin, respectively, with a gain of Rs 65-65.

On the other hand, peanut seeds rose by Rs 195 to Rs 6,215-6,280 per quintal and groundnut Gujarat oil gained Rs 300 to Rs 15,150 per quintal amid a spurt in export activity. The price of groundnut solvent refined also improved by Rs 60 to Rs 2,440-2,500 per tin during the weekend under review.

Crude palm oil (CPO) price rises by Rs 500

Crude palm oil (CPO) price improved by Rs 500 to Rs 11,500 per quintal in the weekend under review. While the prices of Palm Olein Delhi and Palm Olein Kandla oil improved by Rs 900 and Rs 700 respectively to close at Rs 13,400 and Rs 12,400 per quintal respectively. Sesame mill delivery improved by Rs 500 to Rs 14,000–17,000 last week, cottonseed mill delivery (Haryana) improved by Rs 550 to Rs 12,550 and maize Khal by Rs 35 to close at Rs 3,565 per quintal.